Revisit Your Investment Portfolio For Retirement
Fri Aug 21, 2009, 6:20 am | Leave Comment
Revisit your investment portfolio for your retirement and make sure it provides enough income to maintain your lifestyle, has liquidity in case of an emergency or unexpected setback, and offers long-term growth potential to help offset inflation and build assets for the future.
Such a portfolio includes the following key components:
Guaranteed income
These sources will help cover your most important retirement expenses, such as housing and food costs.
Growth
Your retirement may last 30 years or longer. As time passes, you’ll need to withdraw more from your savings to keep up with inflation – so you need a portion of your portfolio invested for growth.
Flexibility
It’s important to have money available in case you encounter a major expense, such as a medical issue or the cost of a new roof.
Principal preservation
Holding a portion of your savings in CDs, Treasury bonds, or fixed annuities may help protect some of your nest egg from losses.
In a Nutshell
If Social Security is your only source of guaranteed income and it’s not enough to cover necessary expenses, you might consider an income annuity. If you have a large nest egg and don’t expect a long retirement, you might emphasize principal protection over growth.
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